The Senior Living Investment Brokerage trio of Jason Punzel, Brad Goodsell and Vince Viverito sold three seniors housing communities across the country. Both deals involved properties with a good amount of upside, which is certainly not uncommon these days. The first deal involved a 73-unit assisted living/memory care community in central California. Their REIT owner decided to realign its portfolio, hence the sale. A regional owner/operator plans to remodel both communities.
The SLIB team then sold a 67-unit independent living/assisted living community in Wayzata, Minnesota (Minneapolis MSA), that had been vacant since the early days of the pandemic. A number of COVID-19 illnesses caused the closing, but the community had been earning around $3.16 million of revenues in 2019, with a below-market operating margin.
The prior not-for-profit owner had been operating the 25-year-old building as more of a “B” quality asset prior to its closing. But the new local owner/operator plans to invest heavily in renovations to bring the property up to “A” quality and take advantage of its location in the affluent Minneapolis suburb. The purchase price came to $7.2 million, or about $107,500 per unit. Not bad for an empty building.
